Are separately stated charges for original design work performed by a Certified Kitchen and/or Bath Designer subject to Texas sales tax?

Plain-English summary

A taxpayer wrote to the Texas Comptroller's Tax Policy Division asking about the sales tax treatment of separately stated charges for original design work performed by a Certified Kitchen and/or Bath Designer. The Comptroller's response, signed by Al Van Allen of the Tax Administration Division, is short and direct: such charges are not subject to sales tax. The letter notes the opinion is based on the facts submitted and that other, similar facts could yield different results.

What this means for you

Certified Kitchen and/or Bath Designers

If you separately state your charge for original design work — developing original specifications and producing original design work for a client — that charge is not taxable as a sales transaction under this ruling.

Business owners and accountants

Keep design charges separately stated on invoices from any charges for taxable items (such as materials or taxable services) if you want to rely on this treatment. The ruling addresses only the design charge itself, based on the specific facts the taxpayer described.

Tax professionals

This is a short-form, fact-specific STAR letter ruling. It confirms nontaxability of separately stated original design charges by a Certified Kitchen and/or Bath Designer, but the Comptroller expressly cautions that different facts may yield a different result, so it should not be treated as a blanket rule for all design-related billing arrangements.

Common questions

Q: Are charges for original design work performed by a Certified Kitchen and/or Bath Designer subject to Texas sales tax?
A: No, provided the charges are separately stated — the Comptroller confirmed such charges are not subject to sales tax.

Q: Does this ruling apply to any facts other than those described in the request?
A: The letter states the opinion is rendered based on the facts submitted and that other, similar facts may yield different results.

Citations and references

No statutes, rules, or cases are cited in the text of this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9506L1351F05

Original ruling text

June 12, 1995

Dear **:

Thank you for your recent letter regarding the tax treatment of
separately stated charges for original design work performed by a
Certified Kitchen and/or Bath Designer.

Such charges are not subject to sales tax.

This opinion is rendered based on the facts you submitted. Other
facts, though similar, may yield different results.

You may call me toll free at 1-800-531-5441, ext. 3-4680. The
direct line is 512/463-4680. You may also write to Tax
Administration, Comptroller of Public Accounts.

Sincerely,

Al Van Allen
Tax Administration Division

NOTE: Previous Accession Number 9506182L